Q4 2025 Driven Brands Holdings Inc Earnings Call Transcript
Key Points
- Driven Brands Holdings Inc (DRVN) reported a 6.3% revenue growth for the full year 2025, reaching approximately $1.9 billion.
- The company successfully reduced its net leverage to 3.7 times by the end of 2025 and further to 3.3 times in early 2026.
- Take 5 Oil Change achieved its 22nd consecutive quarter of same-store sales growth, with system-wide sales growing 17% in 2025.
- The company completed the sale of its international car wash business, using proceeds to pay down over $470 million of debt.
- Driven Brands Holdings Inc (DRVN) has strengthened its financial foundation by implementing a new ERP system and enhancing its finance leadership team.
- Driven Brands Holdings Inc (DRVN) had to restate its financial statements due to material errors related to lease accounting, cash accounting, and expense mischaracterization.
- The restatement resulted in revenue reductions of $12 million in 2023, $4 million in 2024, and $5 million in 2025, along with a significant decrease in adjusted EBITDA.
- The company faced challenges with its Franchise Brands segment, which reported a 1.1% decline in same-store sales due to softness in the collision industry.
- Driven Brands Holdings Inc (DRVN) experienced a moderation in traffic for Take 5, particularly among new and value-oriented customers.
- The company anticipates $35 million to $45 million in non-recurring restatement-related costs impacting its 2026 financials.
Good day, everyone, and welcome to Driven Brands' fourth-quarter 2025 earnings call. Please note that this call is being recorded. (Operator Instructions) I'd now like to hand the call over to Steve Alexander. Please go ahead, sir.
Good morning. Welcome to Driven Brands' fourth-quarter 2025 earnings conference call. The earnings release and net leverage ratio reconciliation are available for download on our website at investors.drivenbrands.com.
On the call with me today are Danny Rivera, President and Chief Executive Officer; and Mike Diamond, Executive Vice President and Chief Financial Officer. In a moment, Danny and Mike will walk you through our financial and operating performance for the quarter and full year.
Before we begin our remarks, I would like to remind you that management will refer to certain non-GAAP financial measures. You can find the reconciliations to the most directly comparable GAAP financial measures on the company's Investor Relations
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